VZ - AST SpaceMobile: Stock Launches Into Space
2024-05-31 10:05:37 ET
Summary
- AST SpaceMobile has seen a surge of 263% in the past month due to a short squeeze sparked by its deal with AT&T and Verizon.
- Verizon is set to invest in AST SpaceMobile, allowing the company to provide connectivity in areas where Verizon's cell tower coverage is weak.
- Cash burn and stockholder dilution remain material.
AST SpaceMobile Overview
AST SpaceMobile, Inc. ( ASTS ) is surging, adding 263% over the last 1 month in a historic short squeeze sparked by the direct-to-cellular company's recently announced deals. Verizon Communications ( VZ ) is set to invest $100 million in ASTS, split between $65 million of commercial prepayments and $35 million of convertible notes. The deal will see ASTS jump on VZ's 850 MHz spectrum to provide connectivity to remote "notspots" in areas where VZ's cell tower coverage is weak. Short interest in ASTS was high, with 31,645,635 shares sold short as of the last Nasdaq ( NDAQ ) update. This formed 26% of diluted weighted average shares outstanding of 121,447,138 at the end of the most recent fiscal 2024 first quarter. ASTS is up since I last covered it with a neutral rating in January....
AST SpaceMobile: Stock Launches Into Space